Blockchain for Marketing & Insights

1© GfK July 13, 2018 | Title of presentation
Blockchain, Marketing & Insights
Image: Teamlab.art

Blockchain, Marketing & Insights
What We Will Cover Today
1. Data Fraud, Data Quality, Data Law
2. Blockchain – the Needed Technology Trust Institution
3. Blockchain – Huge Levels of Investment Driving R&D / Innovation Efforts
4. Four Facets of Blockchain Innovation that Will Impact the Marketing Industry
5. Some Major Players Already Focused on Blockchain
6. Ways to Take Action Now

Do We
Actually Care
About Data
Quality?

What is the Cost of Flawed Data?

What Happens When You Feed Bad Data into AI?
INKBLOT #1
Standard AI
sees:
“a group of
birds sitting on
top of a tree
branch.”
INKBLOT #1
Norman sees:
“a man is
electrocuted
and catches
to death.”
What do you See?

Consumer Push for Change is Coming

Regulatory Drivers: Vermont & California & GDPR –
Regulatory Forces at Work That Drive Consumer Data
Ownership, Transparency & Traceability
Ultimately – there is a lack of trust in the data ecosystem as it stands.

How Much is Trust Worth?

Blockchain is the “trust protocol”
– Marc Andreessen
Blockchain enables trusted transactions directly between two or more parties,
authenticated by mass collaboration and powered by collective self-interests,
rather than by large corporations that are measured by their profits.

Massive Amounts of Capital
Is Coming into the Blockchain
Market!

There is an
ICO Funding
Boom
Underway
Unleashing
Massive R&D
Capital
Source: GP Bullhound, Pitchbook, ICO Bench, Coinmarketcap

VC Capital
Flowing to
Different
Places than
ICO Capital
Source: GP Bullhound, Pitchbook, ICO Bench,
Coinmarketcap

Four Aspects of Blockchain for Marketing to Get Better Data
1. Identity Verification
2. Data Monetization
3. Data Traceability
4. Tokenomics & Incentive Systems

Specific Projects Tacking Key Aspects of the Consumer Data
Value Chain
Identity Verification
& Self-Soverign
Identity (SSI)
Personal Data
Management &
Monetization
•
Data Flow / Data
Supply Chain
Management
Tokenized
Dynamic Incentive
Systems
Cosmian
Measure
Protocol

Data Control Matters
Self-Sovereign Identity

“Self-Soverign Identity” (SSI) with Blockchain
Self-sovereign identity puts people in charge their own digital identities. With self-
sovereign identity, individuals don't rely on another party, such as Facebook, to
issue them an identifier for their use. They create the identifiers and own and control
them along with what information is shared with whom under what conditions.
The key elements to SSI
1. PERSONAL: Unique to you and you only
2. PERSISTENT: Lives with you from life to death (no monthly fee!!)
3. PRIVATE: Only you can control your own identity, and you can selectively
choose what to share and with whom
4. PORTABLE: Accessible anywhere you happen to be through multiple form-
factors

SSIs, Technically, Are Now Possible – Needed a Lot of
Technology Solutions
Decentralized
Identifiers
(DIDs)
Shared Legers
Public & Private
Keys
Directed
Identifiers
Mobile Apps &
Cloud Services
Verifiable Claims Phone Home
Zero Knowledge
Proofs
Claim
Revocation

Self-Sovereign Identity Blockchain Systems are In Use Now, Sort
of! In Syria, by the World Food Program – ID2020

Five Aspects of Blockchain for MR to Get Better Data
5. Trust Through the Ecosystem in the Final Deliverable

Monetizing an
Individual’s Data

How Much is Your Data Worth?
What Would You Sell, Personally?
1. Consumer Profiling Data
2. Financial Data
3. Healthcare Data
4. Vehicle Data
5. IoT Data
6. Etc…

How Much is Your Data Worth?
What Would You Sell, Personally?
1. Consumer Profiling Data
Digital Advertising à $235 / Year?
Ad impressions served to opt-out users (no behavioral data) fetch 59% lower
prices on average than those served to consumers with tracking cookies
Facebook à $80 APRU * 59% = $47 ARPU for Behavioral Data
Facebook about 20% of Digital Ads, so average $235 / Year for Digital Advertising
2. Financial Data
3. Healthcare Data
4. Vehicle Data
5. IoT Data
6. Etc…

Data Marketplaces
Centralized vs Decentralized - Blockchain
Cosmian
Measure Protocol

What Makes for a Good Data Marketplace?
1. Infrastructure where sellers offer data in exchange for something of value from
buyers
2. Data evaluation and valuation mechanisms
3. Incentives for all market participants to act honestly, including an enforcement
system to monitor for and act against dishonest behavior
4. Incentives for all players to ensure data quality, including an enforcement
mechanism to guard against low-quality data
5. Participants. If a marketplace trades personal data, the sellers should be the
rightful owners of that data, namely, in the case of consumer data, the
individuals.
6. Economics that rewards the whole ecosystem – data providers, data consumers
and the larger ecosystem

Example of a Data Marketplace Built on Blockchain: Opinion
Economy

Economic Advantages of a Decentralized Data Marketplace?
Measure Protocol’s Model
$5 total
via panels
$4.60
$0.40
Panel
margin
$3 total
via Measure
$3.00
Respondent
margin
TODAY
$5 total
via Measure
$5.00
FUTURE

Five Aspects of Blockchain for MR to Get Better Data
5. Trust Through the Ecosystem in the Final Deliverable

Figure 2. Conceptual depiction of the structure of a Chainpoint 3.0 proof.
How You
Track Data
Elements in
Blockchain
Merkle Tree

Blockchain to Trace Data Usage
Verifai - Machine Learning Auditability - creates a cryptographically verifiable audit
trail to prove how a neural network has been trained and demonstrates a practical
use of blockchain technology in artificial intelligence.
It also illustrates how valuable blockchain can be vs what other alternative could
allow this traceability with certainty
Trust
Anchor
Data
Integrity
Timestamp

Token Economics & Incentive Systems

Getting the Tokenomics Right Really Works!
…motivated the building of the world’s
largest supercomputer (4x) with over 200,000 nodes…
…and created the Cryptocurrency, now worth c.
$182Bn, all self-directed – no one told anyone to
do anything
A mere whitepaper…

ICOs / Tokens All About Aligning Incentives! Something the
Marketing and Insights Industries Should Own!
• The key thing to really making
a blockchain ecosystem work
is scale – you need a lot of
people performing a lot of
transactions
• You want an incentive for
people to use tokens and for
there to be a long-term value
to them (and likely a penalty to
liquidate)
• You want to create a market
where sellers can be buyers
(Bitcoin / ETH)
Source: Work Coin, William Mougayar

Key Elements to Tokenomics
How do you create value through token movements inside your platform
1. Token functionality:
2. Token distribution:
3. Token governance:
4. Token workflow:

Example of Tokenomics: CoolCousin
1. Token functionality: built on ETH, an open source
cryptographic token named CUZ, which is created for the
exchange of value of travel information and unique local
information.
2. Token distribution: 21% to community pool, distributed
over 3 years. Replenished from transaction fees over
time, 10% Team, 10% ICO advisors, 26% Future
Operations, 33% ICO. Lockup periods of 9 – 24 months.
Fixed pool of tokens.
3. Token governance: Ecosystem is comprised of two
entities – the Company and the Community. The
Company is responsible for tech & Biz Dev to grow &
sustain the community. The Community creates and
oversees content, services, quality, dispute settlement,
etc. Separation of the two is key to scale the community
and ensure quality of content and services. A Board of
Representatives is a mix of Company and Community
members and acts as a bridge.
4. Token workflow:

So Where Can This All Be Applied to Marketing?
Identity
Verification &
Self-Soverign
Identity (SSI)
Personal
Data
Management
&
Monetization
Data Flow /
Data Supply
Chain
Management
Tokenized
Dynamic
Incentive
Systems
1. Market Research – Connecting Data From Source to Insight
2. Marketing Effectiveness – Connecting Ad Exposure to Individuals' Behavior to
Purchase
3. Media Behavior – Connecting All Consumer Media Touchpoints
4. And what else!?...

Facebook & Google are Long in Blockchain

Google Has Also Been Thinking About This for a While and May be
Building their Own Blackbox Version of This

Facebook & Blockchain
• Internal blockchain project now led by David
Marcus – ran the Messenger product, ex president
of PayPal, and on board of CoinBase
•CoinBase has 10M+ users – maybe over 1/3 of all
holders of a crypto wallet
• FB securing / managing permissioned access to
individual data (an FB SSI)
+
• Leverage FB’s implicit reputation economy (DW)
+
• Extend FB payment system?
+
• Streamline Data Flows Through Standards-Driven
Approach

What Can Your Organization do Now?

What Can You Do Now
You should be taking blockchain technology as seriously as you should have
been taking the development of the Internet in the early 1990s.
It’s analogous to email for money or email for data assets.
1. Pilot With Existing Project(s) – Get Learning
2. Build Your Own Blockchain
3. Talk to partners about JVing – share the risk!

Evaluating a Blockchain Project for Potential Piloting
1. Read their whitepaper!
2. Is there institutional (VC) money in it?
3. Have they actually built a dApp (decentralized application)?
4. Do they actually have skilled blockchain developers!?
5. Is their code on Github? How active is the community around it?
6. How many users do they have now?
7. What is the governance structure of their blockchain project?

Want to Build? What Blockchain Ecosystem to Bet On?
One Way to Look at It
Ethereum Waves Bitcoin NEO
# ICOs to date 201 14 4 3
ICO $USD $3,213 $63 $27 $38
Platform
Maturity
3 Years 2 Years 9 Years 3 Years
Market Cap
Ratio*
21.2% 17.2% 1.0% 1.8%
Market Cap
Share**
18.1% <0.1% 41.4% 0.02%
Notes: * Defined as (market cap of ICO companies on base protocol ) / (market capitalization of base protocol).
**Market share as of total market capitalization
Data as of 5 March 2018.

Why is Ethereum So Strong?
1. Relative Ease of Use
2. Strong Community
3. Better Performance Metrics
4. Addressed Scams
5. Clear Vision, Leadership, and Credibility

So What?
1. Data quality will matter – maybe didn’t really matter before – going to be central
2. Blockchain solving the quality / anti-fraud issue by providing transparency,
traceability, enabling security, and supporting ecosystem-wide incentives
3. If you don’t start to take action, no worries, others are!
And while we focused on consumer data today, we could equally focus on the
adtech ecosystem where there is equal amount of innovation taking place

Thank you!
Come to the IIeX Blockchain Conference in
New York City – October 9th,!

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